With the economy still struggling and rates dropping what is ahead for this industry? Rates typically drop in the fall but it seems a little early. I was speaking with a friend of mine and he is having a difficult time getting the rates he wants with his van. Freight is getting soft (in some areas) and rates are dropping. Apparently, some people are grabbing anything they can without concern for a rate. Fuel is not coming down, although gas has dropped in many parts of the country. For those who are new to this industry, trucking tends to be ahead of the economy. We see a drop before it is recognized by the general public and the first to benefit or see a turnaround. I have no doubt that the herd will thin this fall and through the winter. In a typical presidential election, the administration that is in power wants to give the appearance of a strong economy. I am not sure that this administration will be able to present that image. Too many people are out of work. Apparently, carriers are still buying equipment. Companies are still hiring drivers. I have not heard any new figures as to turnover rate recently. The last numbers that I recall was at 136% per annum. Products will still need to be moved from one place to another. I don't know if companies have the excess inventory they had a couple of years ago.
In any case, I would like to hear some thoughts about what you are seeing and thinking about the business and economy as it concerns trucking.